Many ways to decrease your financial risks when you are purchasing a industrial Commodity

Many ways to decrease your financial risks when you are purchasing a industrial Commodity

Within this text I would like to describe the definition of third party inspection (TPI), the importance of independence, and supply some brief information on the additional forms of inspection organizations.

So, what exactly are TPI agencies and what type of services do they offer?

Based on the quality criteria presented in the ISO 17020, you will find three types of inspection organizations. The first is third party inspection and it’s exclusively accountable for providing inspection services. Unlike the other types, TPI organizations are not able to be involved in procurement, fabrication, supply, design, and installation.

This quality standard also requires all parties to have access to the third party inspection organizations and their services. This requirement is what makes the presence of TPI organizations so important to the functionality of businesses that are involved in purchasing, selling, etc.

This means that a third party inspection body provides their assistance to the buyers, custom authorities, engineering companies, and sellers, along with every other business that must abide by quality or safety rules and regulations.

Issues of independence, impartiality, integrity, and confidentiality have a major part in the performance of a third party inspection agency.

It is necessary for the TPI organization to carry out their procedures in a style that is unbiased.

On the bases of these requirements, when an arrangement is made by a purchaser or vendor, their goods need to be inspected and checked independently.

In cases where an argument occurs between the seller and buyer, then neither party should anticipate that the TPI organization will provide a judgment according to their motives.

In some cases, buyers and sellers have made the argument that their position as the client should force the contracted inspector to act under their authority and interest.

Even so, because of the TPI standard that demands independence, this argument is incorrect. If implemented, this practice would drastically harm the integrity of the third party inspection organization. Consequently, no company could trust the inspection services given.

The second kind of inspection organizations are not the independent firms. There are the small units in the large scale firms. The firm main business is engineering, purchasing and manufacturing. The inspection unit works under top management of the firm and makes all required inspection activities that need to be done for the firm own projects. The example can be a quality control section of EPC contractor. The inspection unit in this EPC contractor will do all inspection activities which need to be done on the project purchase orders.

The third type refers to the quality control department of the engineering company that provides quality control services to the purchasing department as well as to other similar companies.

The application of the third type is very less. The companies prefer to receive inspection services from independent inspection bodies.

The most frequently asked question relating to the third party inspection is: Why is it regarded as third party and who are the 1st and 2nd parties?

Well, the seller, vendor, or manufacturer is considered the first party. Then the buyer, engineering company, or end user is designated as the second party.

The third party will provide their inspection services independent of either party.

Meaning that the first and second parties will likely carry out inspections of their own, but the third party is brought along to remove what is known as a conflict of interest.

Know that any individual that works for an engineering company, vendor, or seller can’t officially be called an inspector. They’re simply quality control staffs.

The official title of inspector can only belong to individuals who work for an accredited third party inspection organization or those that are employed by an owner. These people are deemed as owner inspectors.

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